Analysis shows Bitcoin might hit $100K by May, supported by bullish chart setups and high profitability. Key patterns, including a double bottom, bull pennant, and falling wedge, suggest underlying momentum. Liquidation data, indicating short positions, could further drive prices higher as market confidence grows. However, investors should exercise caution and conduct their own research before trading.
Recent analysis suggests Bitcoin (BTC) might be on the verge of a significant price rally, potentially reaching $100,000 by May. Five key charts are lining up, showcasing bullish signals. Indicators like liquidation levels and on-chain data are not only converging but also reflecting a rebound in market confidence, painting a convincing case for this drastic price movement.
Firstly, BTC’s daily chart reveals a classic double bottom pattern that has emerged, confirming a breakout above the neckline resistance at $87,643. This structure hints at a potential target of $100,575. Moreover, momentum indicators, particularly the relative strength index (RSI), remain in bullish territory, indicating further growth could be possible. The 50- and 200-day exponential moving averages (EMAs) are now acting as support, which is encouraging for buyers. Volume has stayed steady since the breakout, suggesting that bullish momentum is still intact.
Next, the hourly chart for BTC presents a bull pennant setup. This geometric pattern suggests there’s a brief period of indecision after a sharp rally, with a target looming around $100,900. The structure has taken shape after a significant increase, implying BTC is positioned for another upward move. Even though the trading volume is somewhat low, the pattern remains intact, supported by positive EMA alignment. A breakout from this pennant could spark further buying pressure, particularly from traders eyeing significant price levels.
Turning to the three-day chart, a falling wedge breakout has been observed. Here, BTC has surpassed a crucial resistance level near $94,000, with the projected move now pointing toward approximately $102,270. Falling wedges typically signal bullish reversals, and BTC’s clean breakout above the upper trendline adds substantial technical weight to this assertion. Volume surged during this breakout, highlighting robust buyer conviction. However, the $94,000-95,000 resistance may impede further price advances unless breached decisively.
Additionally, a Binance heatmap analysis reveals a thick concentration of short positions clustered around the $100,000 mark. This could act as a liquidity magnet, potentially pulling prices upwards as market makers seek these liquidations. If BTC continues its ascent, short-sellers might be pressured to exit, which could lead to a domino effect of buy orders being triggered, reinforcing the bullish sentiment.
Lastly, cryptocurrency data from Glassnode indicates that as of April 23, 87.3% of Bitcoin’s circulating supply is now profitable, a significant jump from 82.7% observed last month. This uptick illustrates that more Bitcoin has changed hands at lower prices during the March correction, suggesting renewed accumulation by investors. Historically, when profitability rates remain above 90% for a sustained period, this has often preceded euphoric bull markets.
Taken together—bullish chart patterns, heightened liquidity activity, and increasing profitability—Bitcoin seems poised for a possible surge towards that $100,000 target by May. But, it’s crucial to note that this analysis shouldn’t be interpreted as financial advice; prudent research and caution are always recommended in investment ventures.
